"Odyssey DLC didn't go as expected": Frontier wrote off a 7 million loss on it as unrecoverable -
https://otp.tools.investis.com/clie...regulatory-story.aspx?cid=1725&newsid=1594040 - also noted in various other TNS bulletins and annual accounts that sales had been below expectations.
"Other games have been financial disasters": 'disasters' might be a bit overstated but they've not been
profitable yet. F1 2022, F1 2023 and Realms of Ruin have all sold "below expectations" - example for RoR at
https://otp.tools.investis.com/clie...regulatory-story.aspx?cid=1725&newsid=1735583
"Frontier is close to bankruptcy": very overstated - they have enough cash saved in the bank to survive the next two years at least even if things don't improve. They're not in good shape and can't
keep making losses on the scale of the recent years, but they have time to turn things around from reserves established in the good years.
https://otp.tools.investis.com/clie...regulatory-story.aspx?cid=1725&newsid=1726162
"Frontier are laying people off": a restructuring and redundancies programme was again announced recently as part of their attempts to stop making losses. (same link as third item)
Their investor presentations at
https://www.frontier.co.uk/investors/ and accounts at
https://www.frontier.co.uk/investors/annual-and-interim-reports provide more details, but in summary of recent years
- FY22: profit 6.7 million
- FY23: loss 4.6 million
- FY24: expected loss 9 million (half-year results are likely to be published in a couple of weeks)
- FY25: after redundancies and other measures they hope to return to break-even
Or we might have had exactly the same game we currently have, except without the financial cushion from their really big successes (the Jurassic World and Planet Coaster/Zoo games have all brought in similar income to Elite Dangerous on
much lower costs) meaning that Odyssey's losses could be absorbed without seriously damaging the company, rather than putting it into a "well now what do we do?" crisis.
They've spent more money on Elite Dangerous in the last decade than on any two or three of their other games combined (around £70 million). In return for that, they've got about as much income (£127 million) as any one of their Management Sim games ... but taken twice as long to get that income. Profitable, definitely, but hardly the massive hit of JWE(2) or Planet Zoo.
One thing Frontier cannot reasonably be accused of is "insufficient commitment to Elite Dangerous".
(Their shareholders might suggest "insufficient commitment to Management Sims" but fortunately no-one listens to them)